Texas House Bill HB4040

Texas 2023 - 88th Regular

• Filed: 3/8/23

Caption

Relating to the disclosure of charges, fees, assessments, surcharges, and taxes collected by a telecommunications provider.

Impact

By enforcing these disclosure requirements, HB4040 is likely to affect state laws governing consumer rights and telecommunications regulations. It is expected to empower consumers with better knowledge of what they are being billed for, potentially leading to more informed decisions about their telecommunications choices. Furthermore, the bill could push telecommunications providers to be more accountable and transparent regarding their pricing structures, thereby enhancing consumer trust and protecting their rights.

Summary

House Bill 4040, introduced by Hayes, aims to enhance transparency in the telecommunications sector by mandating that service providers disclose detailed information about charges, fees, assessments, surcharges, and taxes collected from consumers. The bill specifically requires telecommunications providers to publicly share this information on their websites annually. This requirement is intended to provide consumers with clearer insights into the fees they are being charged and the entities responsible for imposing these fees, as well as how the collected revenues are allocated.

Sentiment

The sentiment surrounding HB4040 appears to be generally positive among consumer advocacy groups and the public, as they view the bill's provisions as a necessary measure for consumer protection and transparency within the telecommunications industry. Supporters assert that these disclosures can prevent surprise fees and ensure that consumers have the information needed to make sound choices about their telecommunication services. However, some telecommunications providers may express concern about the operational implications of complying with these requirements.

Contention

Notable points of contention may arise regarding the potential burden of compliance on telecommunications providers, especially smaller companies that might struggle to implement these disclosure mechanisms effectively. Critics might argue that the requirements could lead to increased operational costs, which could in turn be passed on to consumers. Additionally, there could be debates over what constitutes adequate disclosure and whether the proposed timelines for these disclosures are reasonable.

Texas Constitutional Statutes Affected

Utilities Code

• Chapter 64. Customer Protection
  • Section: New Section